There is very little interest in vehicle owners to insure their vehicles in Indonesia. In fact, by relying on insurance, vehicle owners can live in peace without worrying about their vehicle.
Compared to Singapore, awareness of insurance in Indonesia is very much different.
This statement was conveyed by Eddy Ismanto, SVP Corporate Secretary of Asuransi Astra to Otomania, at the “safety riding for journalists” event at Polda Metro Jaya, Saturday (5/12/2015).
“Singaporeans who do not follow insurance are only about 2 percent, in contrast to those in Indonesia. Here individually, insurance only touches 10 percent to 15 percent of vehicle owners. So there are still quite a lot left,” said Eddy.
Eddy continued, motor vehicle insurance, especially two-wheelers, is still limited to the initiative of financing institutions (leasing), not from the awareness of the vehicle owners themselves. So when the vehicle loan is complete, the insurance also stops.
So, continued Eddy, the vehicle insurance market in Indonesia, depends on how many cars or motorcycles are sold with credit payments. Indeed, after being evaluated, the vehicles whose payments were by credit reached 80 percent. However, the insurance age is limited, only for the credit period.
“If credit goes up, auto insurance goes up, and vice versa. However, the insurance age is also limited, depending on the length of time the vehicle is credited. It’s still very rare for vehicle owners to extend insurance after the credit is paid off,” said Eddy.